The tide is turning in favor of NaturalShrimp Inc (OTCMKTS: SHMP), after a harrowing plunge in the first half of the year. Price action activity indicates the upward momentum is gathering pace on renewed investor interest, following a flurry of positive developments in recent weeks.
OTCMKTS: SHMP Price and Catalysts Analysis
For starters, the company is fresh from inking a strategic partnership with Hydrenesis on the use of a new Hydrogas technology. In addition, the company is staring at a possible capital injection in the range for up to $5 million, in new preferred equity financing.
Investors taking note of the fact that the company holds the key to future shrimp production might explain, the love the stock continues to receive in the market. The fact that the stock appears to have hit a bottom after a recent pullback all but affirms bounce back credentials as NaturalShrimp is currently trading at a huge discount to its 52-week highs back in February.
The stock has since taken out the $0.13 resistance level signifying strengthening upward momentum. As it stands, NaturalShrimp could be on its way to the $0.20 mark, seen as the next substantial resistance level. A rally followed by a close above the $0.20 technical level should mark an end to a bearish run that has taken a toll on the stock.
The $0.10 mark is the immediate support level above which NaturalShrimp remains well supported for further upside action. A sell-off followed by a close below the support level could trigger renewed selling that could see the stock plummeting back to this year’s lows.
NaturalShrimp bills itself as a farming company engaged in the development of a technology for the production of fresh, gourmet-grade shrimp. The company boasts in its ranks the first commercially viable system for growing natural shrimp in enclosed water systems.
NaturalShrimp has evolved to become the future of Shrimp production. It’s commercially viable system, RAS technology, for producing gourmet-grade pacific white shrimp is the talk of the town, expected to generate significant value going forward.
While shrimp production is a multi-billion dollar business, current systems can no longer be relied upon given the high levels of bacteria as well as viral diseases and buildup of ammonia associated with them. NaturalShrimp technology stands to do away with all these challenges with its system at a time when people are looking for healthier food choices.
“NaturalShrimp’s (SHMP) patent of using electrocoagulation to clean the saltwater in their electronically monitored/controlled shrimp raising tanks, showed all pathogens and contaminants eliminated. NaturalShrimp is raising shrimp with its industry-changing patented process, which will literally bring in increasing millions of dollars yearly,” explains Chemical Technician Robert Schaefer.
NaturalShrimp has since inked a deal with Hydrenesis Inc. to enhance the RAS shrimp production system capabilities. With the integration of Hydrogas, the system will now be able to produce other aquatic species in addition to natural shrimp.
The use of the Hydrenesis Hydrogas patent-pending antioxidant treatment technology, NaturalShrimp should be able to expand its market reach by enhancing the production of other aquatic, fresh, and saltwater species. The new technology will also make it possible for NaturalShrimp to control other oxidation processes that create havoc in species production tanks.
The company’s balance sheet is on course to receive a boost on the company receiving $5 million commitment in preferred equity financing from GHS Investments. The investment should make it possible for the company to enhance the development of the shrimp production system.
“Today’s announcement demonstrates our ability to raise significant capital as we seek to expand and develop our patented technology. The Preferred stock agreement will allow us to strengthen our stockholders’ equity section on our balance sheet, thereby allowing us to further meet the commitments to up list on a senior exchange sometime in the near future,” explained CFO, William J. Delgado.
NaturalShrimp fundamentals are rapidly turning positive as the company continues to position itself as the future of shrimp production. The company’s RAS shrimp production system eliciting strong demand and interest explains renewed investor interest, given its potential in the multi-billion-dollar seafood industry.
A $5 million capital injection is a much-needed boost that will allow the company to enhance the technology for mass-market adoption. That said the future can only be bright as NaturalShrimp continues to execute its strategic growth initiatives. The stock is set to continue climbing higher as more investors take note of the company’s enormous potential.
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Disclosure: We have no position in SHMP and have not been compensated for this article. We may or may not initiate a LONG position within 72 hours of publication.